Emergency Energy Bill Called a Decisive Step To Protect Nevada Consumers From Western Power Crisis

LAS VEGAS, April 18 /PRNewswire/ -- Saying that Nevada has taken the kind
of decisive step required by the western energy crisis, Nevada utility
officials today applauded the Nevada Legislature and Governor Kenny Guinn for
their rapid action on emergency legislation that will assure the continued
creditworthiness of the utilities while protecting consumers from unexpected
rate hikes.
The Nevada Legislature today passed Assembly Bill 369, which allows the
utilities to recover their soaring costs for wholesale power over time. The
bill's deferred accounting method eases fears of rate hikes during the summer
but assures lenders, investors and power suppliers the utilities will continue
to meet their financial obligations. The bill also repeals electric
deregulation in Nevada and places a moratorium on the sale of power plants in
the state.
"This was a bold move by the legislature and the governor to focus on the
real problem that threatened every consumer and business in Nevada," said Walt
Higgins, chairman, president and CEO of Sierra Pacific Resources (NYSE: SRP),
the parent company for the state's two largest utilities, Sierra Pacific Power
and Nevada Power Company. "There were many investors, power developers,
citizens and potential business prospects who have been waiting to see if
Nevada would deal with this issue -- and they now have their answer."
"This is an elegant solution that protects consumers from sticker shock by
delaying and spreading any increases out over time, while offering our
business partners the immediate assurance that our creditworthiness is
strong," Higgins added.
The measure passed both the Senate and Assembly today and was signed into
law by Governor Guinn. As an emergency measure, it is effective immediately.
Under the provisions of the legislation, rates would be continued at their
April 1, 2001, levels, reflecting all recent increases to date, and remain
stable until early next year, at which time they would be adjusted to reflect
the actual costs of wholesale power and fuel over that period. If wholesale
costs remain high, the legislation allows for the rates to be spread out over
several years.
"We're gratified by the action taken by the Legislature and Governor on
behalf of consumers in Nevada," Higgins said.
Headquartered in Nevada, Sierra Pacific Resources is a holding company
whose principal subsidiaries are Nevada Power Company, the electric utility
for southern Nevada, and Sierra Pacific Power Company, the electric utility
for most of northern Nevada and the Lake Tahoe area of California, and a
natural gas and water distributor in the Reno-Sparks area. Other subsidiaries
include the Tuscarora Gas Pipeline Company, which owns 50% interest in an
interstate natural gas transmission partnership and Sierra Pacific
Communications, a telecommunications company.

SOURCE Sierra Pacific Resources

LAS VEGAS, April 18 /PRNewswire/ -- Saying that Nevada has taken the kind
of decisive step required by the western energy crisis, Nevada utility
officials today applauded the Nevada Legislature and Governor Kenny Guinn for
their rapid action on emergency legislation that will assure the continued
creditworthiness of the utilities while protecting consumers from unexpected
rate hikes.
The Nevada Legislature today passed Assembly Bill 369, which allows the
utilities to recover their soaring costs for wholesale power over time. The
bill's deferred accounting method eases fears of rate hikes during the summer
but assures lenders, investors and power suppliers the utilities will continue
to meet their financial obligations. The bill also repeals electric
deregulation in Nevada and places a moratorium on the sale of power plants in
the state.
"This was a bold move by the legislature and the governor to focus on the
real problem that threatened every consumer and business in Nevada," said Walt
Higgins, chairman, president and CEO of Sierra Pacific Resources (NYSE: SRP),
the parent company for the state's two largest utilities, Sierra Pacific Power
and Nevada Power Company. "There were many investors, power developers,
citizens and potential business prospects who have been waiting to see if
Nevada would deal with this issue -- and they now have their answer."
"This is an elegant solution that protects consumers from sticker shock by
delaying and spreading any increases out over time, while offering our
business partners the immediate assurance that our creditworthiness is
strong," Higgins added.
The measure passed both the Senate and Assembly today and was signed into
law by Governor Guinn. As an emergency measure, it is effective immediately.
Under the provisions of the legislation, rates would be continued at their
April 1, 2001, levels, reflecting all recent increases to date, and remain
stable until early next year, at which time they would be adjusted to reflect
the actual costs of wholesale power and fuel over that period. If wholesale
costs remain high, the legislation allows for the rates to be spread out over
several years.
"We're gratified by the action taken by the Legislature and Governor on
behalf of consumers in Nevada," Higgins said.
Headquartered in Nevada, Sierra Pacific Resources is a holding company
whose principal subsidiaries are Nevada Power Company, the electric utility
for southern Nevada, and Sierra Pacific Power Company, the electric utility
for most of northern Nevada and the Lake Tahoe area of California, and a
natural gas and water distributor in the Reno-Sparks area. Other subsidiaries
include the Tuscarora Gas Pipeline Company, which owns 50% interest in an
interstate natural gas transmission partnership and Sierra Pacific
Communications, a telecommunications company.
SOURCE Sierra Pacific Resources